Weekly trends: connectivity, hydrocarbons and structural warnings
Digital and tourism: infrastructure and demand
Foreign tourist arrivals rose 10 % in 2024, reaching 3.2 million. The increase follows the reopening of direct flights from Paris, Marseille, Lyon and Frankfurt. The Ministry of Tourism reported 60 % of visitors came from France, 20 % from Spain and 10 % from Germany. Hotel occupancy in Algiers averaged 75 % in Q1 2024, up from 68 % in Q1 2023.
The President ordered the Ministry of Digital Economy to involve private banks in startup financing. The 2024 Startup Act budget was increased to DZD 50 billion (USD 360 million), with 40 % earmarked for seed funding. The National Agency for Investment Development (ANDI) reported 2,300 new tech startups registered in 2023, a 15 % increase from 2022.
Hydrocarbons and energy diplomacy: control and leverage
Sonatrach reported a 3 % increase in crude oil production in Q1 2024, reaching 1.02 million barrels per day. Natural gas production remained stable at 100 billion cubic meters annually. The company signed a USD 1.5 billion contract with Italy’s Eni to develop the Berkine South gas field, expected to add 5 billion cubic meters per year by 2027.
The IMF recommended Algeria reduce hydrocarbon dependence, which accounts for 93 % of exports and 60 % of fiscal revenue. The fund’s April 2024 report stated non-hydrocarbon GDP grew 2.1 % in 2023, below the 3.5 % target.
Transport and logistics: capacity and modernization
Air Algérie announced a 20 % increase in international flights for summer 2024, adding routes to Istanbul, Dubai and Riyadh. The airline reported a 12 % rise in passenger traffic in Q1 2024, reaching 2.8 million travelers.
The Ministry of Transport launched a DZD 150 billion (USD 1.1 billion) program to modernize 12 ports by 2027. The Port of Algiers will receive DZD 40 billion for container terminal expansion, increasing capacity from 800,000 to 1.2 million TEUs annually.
Vocational training and labor market: skills and gaps
The National Employment Agency (ANEM) recorded 1.2 million job seekers in 2023, with 60 % under 30. The unemployment rate was 11.6 %, down from 12.3 % in 2022. The government’s 2024-2027 employment plan targets 1 million new jobs, with 40 % in the private sector.
Food security and climate: drought and data
The government allocated DZD 200 billion (USD 1.45 billion) for irrigation infrastructure in 2024. The program includes 100 new dams and 5,000 km of water transfer pipelines. The National Agency for Dams and Transfers (ANBT) reported 7.2 billion cubic meters of water stored in 2023, down from 8.1 billion in 2022.
Structural risks and IMF warnings
The fund recommended:
– Reducing energy subsidies, which cost DZD 1.2 trillion (USD 8.7 billion) in 2023.
– Increasing tax revenue from 12 % to 18 % of GDP by 2027.
– Accelerating privatization of state-owned enterprises, with 15 targeted for sale by 2025.
Diaspora and foreign relations: engagement and constraints
The Ministry of Foreign Affairs reported 2.5 million Algerians living abroad in 2024, with 1.8 million in France. Remittances reached USD 2.1 billion in 2023, up from USD 1.9 billion in 2022. The government’s 2024 diaspora investment program offers tax exemptions for projects in renewable energy, tourism and ICT.
Weekly balance: growth, constraints and structural risks
Key takeaway for entrepreneurs
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